Evolving investment operations with AIM implementation: Reducing manual work and creating “thinking time” as a new force to support the local economy

Higo Bank, Ltd.

Celebrating its 100th anniversary in 2025, Higo Bank is the largest regional bank in Kumamoto Prefecture – a region undergoing economic revitalization driven by the entry of Taiwan Semiconductor Manufacturing Company (TSMC).

As part of the Kyushu Financial Group, the bank is accelerating its transformation into a ‘regional value co-creation group’ – aiming to build a better future alongside customers, the community, and employees. In April 2024, it launched a three-year medium-term management plan under the theme ‘Leap Forward.’

FEATURED PRODUCTS

INDUSTRY

Banking

LOCATION

Kumamoto City, Kumamoto Prefecture

GOAL

Improve operational efficiency and reduce risk through STP (Straight Through Processing) of securities transactions

Improved work-life balance across all departments, including the back office

Enhanced visibility into transaction progress and compliance rule checks

Automation of investment operations from order placement to settlement

“The liberation of resources through automation is significant. We want to use the ‘thinking time’ for what only humans can create and strive to generate regional value as a regional bank.”

Kazuyoshi Uchiyama
Managing Executive Officer, Higo Bank

Situation

In its investment operations, the bank’s Market and Finance Department adheres to a comprehensive set of internal procedures – from compliance checks and inquiries to order placement, execution, reconciliation, and settlement.

Drive digital transformation across processes

Improve operational efficiency to enhance profitability

Problem

Prior to implementing Bloomberg’s solution, many tasks were performed manually, such as verifying and conducting compliance checks using paper-based outputs from information systems. The manual nature of these processes exposed them to human errors, such as lapses in visual oversight and the risk of misorders due to voice order mistakes.

Inefficiencies inherent in manual processes placed undue stress on human resources, limiting their ability to focus on critical tasks

Reduce operational risk by streamlining and automating trade-related workflows through unified system

Enhance the research output by reallocating human resources to focus on alpha generation

Solution

Higo Bank implemented Bloomberg’s digital transformation solution – AIM (Order Management System) – resulting in greater efficiency across front and middle office operations, and a significant reduction in operational risk.

More efficient data aggregation both within and outside the bank and facilitating smoother coordination among team members

Enable staff to shift their focus from routine operations and document preparation to more strategic, creative aspects of investment operations

Facilitate the sharing of daily order schedules and order statuses, allowing the back office to better anticipate peak workloads

Share transaction details and progress within each asset’s investment team and across the entire front office

“If AIM users expand among other regional banks, we can build a community and share common challenges and knowledge.”

Satoshi Masunaga
Assistant Manager of the Market Operations Group in the Market and Finance Department, Higo Bank

reduction in manual tasks before trade execution

reduction in manual tasks after execution

reduction in transaction and approval time

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